New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-29
PROJECTION PAYSTHE DEBT.
A TEACHER OF FINANCE DISCUSSES THE
CREATION AND LIQUIDATION OF PUBLIC
EEBTe.

PUBLIC DEBTS An Essay in the scisnc. Of Finance By
HENRY ADAMS. Of the Unvsrsity OF Mioniss IN ana
Cornell University. $40, pp 407. Appleton 20
Tho title OF this book points 10 It's main defect.
Nyhcn man talks Of "the science OF finance he
Is ant to have many theories to offer and few facts
he NAV usually be expected to give US all sorts OF
abstract srcculations concerning how the economic
man ought to act in imaginary circumstances. but
not much information how human beings really DO
act under circumstances which present themselves
IN real life Mr.. Adamss work is not devoid OF
information but it would have been far more use1ui
TO the world in which we live had IL been
treasury Of facts regarding the origin history ana
amount of public debts and the burdens they i'm
nose At the outset it Is true, he gives in brief
summary Mr. Nash's statement OF the gross public
debt OF all nations. without detail Some imor-
nation is added regarding the British, Tho french
and the United states debts, and in later CHARGERS
some Information about the public debts OF otates
of the United States at different times, and OF
cities of this country in the aggregate, but with
scanty particulars and no figures of consequence
later than 1880 1t is scarcely necessary TO say
that considerable useful information which might
easily have been given is not TO be found In TINS
volume, especially with regard to the decrease OF
muncipal indebtedness within the PAST seven years.
1t is not exactly compensation that the work
contains an elaborate review Of various theories
respecting tie creation and management of public
Indebtedness. 1t is melancholy fact that MIR.
Micswber's wsest theories never prevented Mr.
Micawber from borrowing, by means wise or unwise,
when he knew that only by such borrowing could
he keep alive until his good day should come and
he could sail away to his summer land OF pl ospey.
So IL is with nations, states cities and towns when
they have to borrow want to borrow, theories
are of no more use than last years birds nest
Either they are in need, and the terms are those
which certain lenders within their range OF credit
please to fix, or they can command the money OF
many centres and fix such terms as they please
Negotiations strictly according to sirc science of
!...ancc' are particularly rare in real life. One
needs to 60 no further than this volume to get an
impression that there is no "science of finance
that its professors able to distinguish from
political science generally, for speaking OF restrc-
tions upon the creation of debts Mr.. Adams says
Up. 3s5 that their general purpose "meets with the
unqualified approval of the science of finance, be-
cause "the object Of establishing strict rules for the
leealaion Of important bills is to render current
legislation clear and to bring business home to the
people' This is pertinent political cons leration
but has more to do with the science of finance
than with the science of metaphysics.
But believing In "the science Of finance Mr..
Adams feels authorized to say that The policy OF
protection is radically perniciOus. apd this
opinion often repeated, seems to affect bis .udg-
ments of various fnanCers whose management he
has occasion discuss lie crtlcses both Secretary
Galatin and Secretary Chase for their conduct
during the Of 1912 and 1861 on the ground
that loan policy failed in both cases. but hardly
does himself justice in view of the fact that these
Secretaries both recommended to CONGRESS measures
of taxation and a financial policy which can with
difficulty be distinguished from that which Mr..
Adams prOnounces theoretically sound. In both
cases the failure of Congress to vote the taxation
needed was the cause of that embarrassment which
the author, departing little from scientific accu
racy, calls failure. MIR. Chase undertook a task
which many fnanciers Of the old world and Of the
new pronounced impossible, even as great political
party declared the failure a few months
before its termination, and the one thing that can
be said with certainty is that Mr. Chase did not
fail in providing the necessary means any more than
General Grant failed to win the desired victories.
That the amounts realized from bonds sold would
have been greater, had Congress provided for a
wiser fiscal policy. is evident whether the people
would have sustained Congress In wiser system of
taxation and of finance not, perhaps quite as
certain as Mr.. Adams supposes.
The wonderful success Of the nation in meeting
and paying its debt Mr.. Adams canddly at
tributes t. its true cause saying: No financial
problem has caused so much embarrassment in this
country as the reduction of taxes, and 1t is because
this problem has proved so difficult OF solution
that the debt has been managed with ease. 1t is
the policy of protection that has paid our debts.
ubis was true In the period from 1916 to 1886,
ard is true at the present time page 274). This
admission from one who asserts that 1.-THE wisdom
Of our statesmen consist in this, that they have
not used unwisely the surplus revenue forced upon
them by radically pernicious system of taxation"
deserves especial notice. In what respect system
is pcrnicious which not only enables but forces q
country 10 surpass the world in debt paying, and
OF the same time to grow In wealth and prosperity
faster than any other nation ever has, Mr.. Adams
docs not attempt to explain The effort would have
brought his favoritc theories far too close to IN
welcome facts.
Nor does the author manifest fondness for that
feature Of American institutions which has allowed
10 corporate organization great freedom Of devel-
Opment. Through corporations no thinks page
340, "a social dependence Is being introduced not
surpassed in its evil tendencies by any previous
form of servitude. Politics are being run in the
interests Of profit to those already goreed with
profit And with especial reference to railroads
he says page ov3)i
The growth Of private corporations is step in
the development Of social constitution. they
prose upon he siis Vi the States as centres of in
dustria administration, and 1t Is because the States
have failed to retain q proper control over them
that they menace the permancncy of popular
government 1t is true that about 1873 the right
Of legal control judicially affirmed, but 80 far
rs railroads are concerned the adopted by
the various Legislatures served only to disclose the
imrotency Of the States. These corporations are
practically irresponsible to the people by whose
favor they exist and whom they pretend to serve.
Popular liberty could be menaced by no greater
danger.
To most thoughtful men Of this day it may ap-
pear that these apprehensons are overstrained
that the solvcncy Of corporations and the freedom
of capital and enterprise are more in danger than
popular liberty that no social dependence exists
which can be colurared with human slayery. and